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World Bank Approved a EUR 47.2 million Loan for Georgia Supporting Economic Reforms

The World Bank’s Board of Executive Directors today approved a EUR 47.2 million development policy operation for Georgia to support the Government’s economic reform program in key areas.

This is the second Inclusive Growth Programmatic Development Policy Operation for Georgia (DPO2).

The DPO supports the country’s economic reform program, key to which are efforts to improve budgeting and fiscal oversight of public institutions, as well as improve the quality of social services for citizens. These goals will be achieved through building an enabling economic environment that puts public finances on a more sustainable footing and supports the development of human capital.

“This operation reinforces the country’s commitment to maintain a stable macro-fiscal framework and pursue structural reforms,” said Mercy Tembon, World Bank Regional Director for the South Caucasus. “The reforms in the fiscal and social sectors will strengthen Georgia’s performance in the years to come and improve living standards of its citizens.”

The operation approved today builds on previous development policy operations that concentrated on building competitiveness for sustained growth.

“Achieving inclusive growth will require macroeconomic stability, investment in human capital and a thriving private sector,” said Mona Prasad, World Bank Senior Economist and Task Team Leader of the DPO program. “The current operation supports the government of Georgia in accomplishing some of these objectives.”

The design of the reform program was led by the government, is consistent with its Four-Point-Program, and is anchored in the World Bank Country Partnership Strategy for Georgia for 2014-2017. The reform areas were chosen according to the World Bank’s track record of engagement and are based on an assessment of the country’s implementation capacity.

The funding comes from an IBRD flexible loan of EUR 47.2 million.

World Bank commitments to Georgia since 1992 amount to approximately US$ 2.27 billion.